NI Water could see £25m spike in electricity bill due to energy price rise

Infrastructure Minister Nichola Mallon says there is a risk that the financial pressure could hit NI Water's ability to deliver services

Soaring energy prices could see NI Water's electricity bill increase by £25m this year.

The water utility is Northern Ireland's biggest electricity user.

Infrastructure Minister Nichola Mallon said this could affect NI Water's ability to deliver services, including increased risk of pollution incidents.

She said additional energy costs at NI Water had already reached £19.7m and this figure could increase by a further £5m by the end of the financial year.

In an effort to tackle the issue, Ms Mallon bid for an additional £20m in recent budget allocation exercise, but only received £1.5m.

Ms Mallon said she is engaging with Finance Minister Conor Murphy and other executive colleagues to ensure they are "fully aware of the consequences of the decision not to allocate the required funding".

Ms Mallon bid for an additional £20m in recent budget allocation exercise to tackle the issue but only received £1.5m

Households have faced a steady stream of energy price increases this year.

Last week, Northern Ireland's largest electricity company, Power NI, said it would increase its prices for domestic customers by 21.4% from 1 January 2022.

Industrial and commercial users have also faced a spike in prices.

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Last month Encirc, which operates a glass bottle factory in County Fermanagh, said it faces a rise in energy costs of up to 150% this year.

It has a plant in Derrylin and another major operation in the north west of England.

Adrian Curry, the firm's managing director, told the BBC that the firm typically spends £40m a year on energy.

But the spike in gas prices means that could hit £100m this year.